Correlation Between Protalix Biotherapeutics and Keros Therapeutics
Can any of the company-specific risk be diversified away by investing in both Protalix Biotherapeutics and Keros Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Protalix Biotherapeutics and Keros Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protalix Biotherapeutics and Keros Therapeutics, you can compare the effects of market volatilities on Protalix Biotherapeutics and Keros Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Protalix Biotherapeutics with a short position of Keros Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protalix Biotherapeutics and Keros Therapeutics.
Diversification Opportunities for Protalix Biotherapeutics and Keros Therapeutics
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Protalix and Keros is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and Keros Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keros Therapeutics and Protalix Biotherapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Protalix Biotherapeutics are associated (or correlated) with Keros Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keros Therapeutics has no effect on the direction of Protalix Biotherapeutics i.e., Protalix Biotherapeutics and Keros Therapeutics go up and down completely randomly.
Pair Corralation between Protalix Biotherapeutics and Keros Therapeutics
Considering the 90-day investment horizon Protalix Biotherapeutics is expected to generate 1.42 times more return on investment than Keros Therapeutics. However, Protalix Biotherapeutics is 1.42 times more volatile than Keros Therapeutics. It trades about 0.09 of its potential returns per unit of risk. Keros Therapeutics is currently generating about 0.04 per unit of risk. If you would invest 116.00 in Protalix Biotherapeutics on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Protalix Biotherapeutics or generate 43.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protalix Biotherapeutics vs. Keros Therapeutics
Performance |
| Timeline |
| Protalix Biotherapeutics |
| Keros Therapeutics |
Protalix Biotherapeutics and Keros Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protalix Biotherapeutics and Keros Therapeutics
The main advantage of trading using opposite Protalix Biotherapeutics and Keros Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics position performs unexpectedly, Keros Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Keros Therapeutics will offset losses from the drop in Keros Therapeutics' long position.| Protalix Biotherapeutics vs. Corvus Pharmaceuticals | Protalix Biotherapeutics vs. Aldeyra | Protalix Biotherapeutics vs. Checkpoint Therapeutics | Protalix Biotherapeutics vs. Cidara Therapeutics |
| Keros Therapeutics vs. ZyVersa Therapeutics | Keros Therapeutics vs. Sonnet Biotherapeutics Holdings | Keros Therapeutics vs. Zura Bio Limited | Keros Therapeutics vs. Phio Pharmaceuticals Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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